© Dukascopy Bank SA
"We don't expect any change in policy [BoE's monetary policy], with a repeat of last month's 8-1 vote. It will be interesting to see what the MPC's minutes say about EM growth prospects given the MPC have had another month to digest some of the macro data."
- TD Securities (based on FXStreet)
Pair's Outlook
The British Pound managed to outperform the US Dollar on Friday and erase weekly losses, amid poor US Non-Farm Payrolls data. H however, gains were still limited by the 23.60% Fibo for the fifth consecutive day. Trade opened above the Fibonacci retracement today, which together with the weekly PP is providing rather strong support, increasing the chances of another rally to occur. Although the weekly R1 is now the immediate resistance, technical indicators keep giving bearish signals, suggesting the Cable is to undergo a correction towards the weekly S1 at 1.5111.
Traders' Sentiment
Bulls now take up 64% of the market (previously 63%), whereas the share of purchase orders increased from 50 to 65%.
© Dukascopy Bank SA